Federal investigators have subpoenaed records of a rental deal between U.S. Sen. Robert Menendez and a nonprofit agency in Union City, launching a criminal investigation that is sure to rock New Jersey's hotly contested Senate race.

Authorities delivered the subpoena to the North Hudson Community Action Corp. earlier this week, according to four sources familiar with the move who requested anonymity because of the ongoing investigation.

The action comes two weeks after The Star-Ledger reported that Menendez collected more than $300,000 from the organization over a nine-year period while he represented Hudson County in the U.S. House of Representatives. During that period, he also helped the agency win millions of dollars in federal funding.

State Sen. Tom Kean Jr., Menendez's Republican challenger, has called the arrangement a case of profiting from official action. Two of his Republican allies filed an ethics complaint against Menendez in Congress, accusing him of a conflict of interest. Independent watchdog groups also have said it was a conflict for Menendez to seek federal funds on behalf of his tenant.

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Menendez purchased a three-story brick house on a residential street in Union City for $92,000 in 1983. He and his family lived there for a time, but they later moved out and he began renting it as commercial property.

In 1994, shortly after Menendez went to Congress, he entered into a lease with the North Hudson Community Action Corp., which used it to house administrative offices. Menendez initially charged $3,100 per month, and eventually raised the rent to $4,000.

$4000 a month might seem like a lot of money for a rinkydink little non-profit nobody ever heard of to pay for a dumpy house in Union City, but its actually a pretty good deal when you take into account that the landlord is funnelling millions of taxpayer dollars back to them in return.

It might have the slight scent of corruption to it, but its all legit. Robert Torricelli ensures us that Bob Menedez is on the up and up.

Quick, someone in the NJ party find another candidate before its too late!!! Oh wait, what am I saying, its Jersey, the dems can substitute a new candidate anytime up to and including the day after the election.

Menendez may be pressured to drop out. This is typical of NJ Democrat politics. Don't be surprised if former Acting Governor Richard Codey is put up to replace Menendez. Cody is a popular figure and could give young Tom Kean Jr,a real run for the money.

Gee nobody seems to get it.Democraps don't break laws only Republicans break laws.Don't take my word for it ask people like Hillary Clinton,Sandy Berger, Rep Jefferson from La. and a score of other honest Democraps !!!

Menendez may be pressured to drop out. This is typical of NJ Democrat politics. Don't be surprised if former Acting Governor Richard Codey is put up to replace Menendez. Cody is a popular figure and could give young Tom Kean Jr,a real run for the money.

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